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Exchange rate Pass-Through in Import Prices of the Russian federation

Igor Salitsky ()
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Igor Salitsky: Gaidar Institute for Economic Policy

Ekonomicheskaya Politika / Economic Policy, 2010, vol. 6, 176-195

Abstract: This paper investigates one of the effects caused by changing exchange rate is the change in prices for imported goods. This effect is called «exchange rate pass-through in prices of imported products». The main reason for the existence of the pass-through effect is the change in producers’ costs, expressed in the currency of the buyer, within the changes of the exchange rate. The article presents the current approaches to modeling the relationship of the exchange rate and prices of imported goods. Based on these approaches different models of oligopolistic competition in a market with heterogeneous goods, ie goods with unique specifics are formulated. The author describes the behavior of the exchange rate against foreign currencies during the period 1997—2005, and considers the dynamics and structure of import of the Russian Federation.

Keywords: exchange rate pass-through; import; oligopolistic competition (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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